Toyota joins Japan peers in agreeing to higher base-pay raises

Reuters Staff

1 Min Read

A security guard walks between Toyota Motor Corp's cars displayed at the company's showroom in Tokyo June 17, 2014.Yuya Shino

TOKYO (Reuters) - Japanese auto maker Toyota Motor Corp (7203.T) said on Wednesday it would raise the monthly base salary for workers by 4,000 yen ($33), its biggest hike in over a decade, joining other major domestic firms in agreeing to larger rises in annual wage talks.

The rise was short of union demands for 6,000 yen per month, but up from last year's 2,700 yen hike. Earlier, electronics firm Panasonic Corp (6752.T) and auto maker Nissan Motor Co Ltd (7201.T) announced monthly base-pay rises of 3,000 yen and 5,000 yen respectively.

Higher wages are considered key to sustaining growth and decisively ending deflation in the world's third-biggest economy. Prime Minister Shinzo Abe's government has been calling for Japan Inc - sitting on record levels of cash amid hefty profits - to do its part in stimulating the economy and lift workers' pay.